The CIT Group priced $1 billion of FFELP-guaranteed student loan-backed notes last week, in a five-tranche deal led by Citigroup Global Markets and Credit Suisse First Boston, its first transaction in the sector.

A source close to the deal noted that the pricing came one basis point wide of the most recent deal from sector veteran Sallie Mae and sets CIT up "very, very well [to issue again] in the student loan sector." Lacking a one-year tranche, the $334 million, three-year A1 class priced at two basis points over three-month Libor, the $210 million, seven-year tranche priced at nine basis points over, the $201 million 10-year tranche priced at 12 basis points over, and the $224 million, 15-year tranche priced at 16 basis points over Libor - all within initial price talk.

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